MIRA INFORM REPORT

Report Date :

05.09.2011

IDENTIFICATION DETAILS

Name :	MIVEN MACHINE TOOLS LIMITED
Registered Office :	Tarihal Industrial Area, Tarihal, Hubli – 580026, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.07.1985
Com. Reg. No.:	08-007036
Capital Investment / Paid-up Capital :	Rs.30.035 Millions
CIN No.: [Company Identification No.]	L29220KA1985PLC007036
TAN No.: [Tax Deduction & Collection Account No.]	BLRM06213E
PAN No.: [Permanent Account No.]	AABTM0082B
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of C N C Machine Tools
No. of Employees :	100 [Office + Factory] Approximately

RATING & COMMENTS

MIRA’s Rating :

Ca [14]

RATING		STATUS	PROPOSED CREDIT LINE
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears huge accumulated losses recorded by the company. Profitability of the company is under severe pressure. Trade relations are fair. Payments are reported to be slow. The company can be considered for business dealings on secured trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Desai
Designation :	Sales and Service Manager
Contact No.:	91-9448285839
Date :	20.08.2011

LOCATIONS

Registered Office / Factory:	Tarihal Industrial Area, Tarihal, Hubli – 580026, Karnataka, India
Tel. No.:	91-836-2212221 – 24
Mobile No.:	91-9448285839 [Mr. Desai]
Fax No.:	91-836-2310411
E-Mail :	Mivensales@gmail.com mmsales@dataone.in
Website :	http://www.
Location :	Owned

DIRECTORS

As on 31.03.2010

Name :	Mr. Vikram R Sirur
Designation :	Chairman
Name :	Mr. Sanjay B Baljekar
Designation :	Director
Name :	Mr. Mukund Muley
Designation :	Director
Qualifications :	B.E.(Elect).
Experience :	24 years of experience in the .field of Electronics
Other Directorship :	Cotmac Electronics Private Limited Cotmac Electronics (Surat) Private Limited Cotmac Telecom Private Limited Cotmac Infotech Private Limited Cotmac Electronics (Bangalore) Private Limited Cotmac Gastech Private Limited Softek Controls Private Limited M and M Floriculture [proprietor]
Name :	Mr. Shyam Sirur
Designation :	Director
Name :	Mr. A R Menon
Designation :	Executive Director
Date of birth / Age :	60 Years
Qualifications :	B.Sc. (Engineering)
Experience :	34 years of experience in the Engineering Industry.

KEY EXECUTIVES

Name :	V. N. Hasalkar
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of promoters and Promoter Group
1. Indian
Bodies Corporate	2588150	86.17
Sub Total (A) (1)	2588150	86.17
(B) Public Shareholding
1. Institutions	-	-
2. Non Institutions
Bodies Corporate	53100	1.77
Individual shareholders holding nominal share capital up to Rs. 0.100 million	362250	12.06
(B) = (B) (1) + (B) (2)	415350	13.83
Total (A) + (B)	3003500	100.00
Shares held by custodians and against which depository receipts have been issued (C)	-	-
Total (A) + (B) +(C)	3003500	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of C N C Machine Tools
Products :	Horizontal Numerically Controlled Lathes CNC Lathe Machines Chucker Series CNC Lathe Machines Universal Series CNC Lathe Machines GL 160/200 CNC Lathe Machines Venus – 250 CNC Lathe Machines Ultra Series CNC Lathe Machines WSU 40 CNC Lathe Machines
Exports :
Products :	Machine Tools
Countries :	Germany Gulf Countries
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

PRODUCTION STATUS As on 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Metal Cutting including Grinding Machines	Nos.	--	50	9

GENERAL INFORMATION

Customers :

• Wipro
• Virgo Engineers, Pune
• Tata Motors, Pune, Jamshedpur
• Ordnance Factory, Ambajhari
• Mahindra and Mahindra
• KSB Pumps Limited, Pune
• BEML, KGF
• Audco India Limited
• Ashok Leyland Limited
• Hosur
• Bhandara
• Escorts Limited, Faridabad

No. of Employees :

100 [Office + Factory] Approximately

Bankers :

The Shamrao Vithal Co-op. Bank Limited, Hubli, Karnataka, India

Facilities :

Secured Loan [Rs. in million]	31.03.2010	31.03.2009
The Shamrao Vithal Co-op. Bank Limited
Cash Credit Account	13..752	37.506
Working Capital Term Loan - SVC	20.238	0.000
Project Loan-SVC	7.523	0.000
Total	41.513	37.506
Secured loan : Loan from The Shamrao Vithal Co-op Bank Limited., Koppikar Road, Hubli is secured by hypothecation of all present and future goods, book debts, receivables and all other moveable assets. The loan is also guaranteed by corporate guarantee of M/s. N A Sirur (Hubli) Pvt. Ltd. Hubli and personal guarantee of a director. The loan is also secured by charge on immovable properties of the company i.e., Land and Building by deposit of title deeds with the bank dnd existing unencumbered plant and machineries.
Unsecured Loan [Rs. in million]	31.03.2010	31.03.2009
Inter Corporate Deposit [N A Sirur (Hubli) Private Limited, the Holding Company]	9.387	6.000
Total	9.387	6.000

Banking Relations :	--
Auditors :
Name :	B K Ramadhyani and Company Chartered Accountants
Address :	Bangalore
Enterprises over which key management personnel and their relatives are able to exercise significant :	Miven Mayfran Conveyors Private Limited Cotmac Private Limited Cotmac Electronics Private Limited Cotmac Electronics (Surat) Private Limited Cotmac Infotech Private Limited Cotmac Telecom Private Limited Cotmac Electronics (Bangalore) Private Limited Cotmac Gastech Private Limited Sirsi Weldaids Private Limited Softech Private Limited Ruris Tecnal Extraction Systems Private Limited Mipro International Private Limited Finearc Systems Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs.10/-each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,003,500	Equity Shares	Rs.10/-each	Rs.30.035 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		30.035	30.035	30.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.528	1.528	[36.700]
4] (Accumulated Losses)		[56.816]	[47.294]	0.000
NETWORTH		[25.253]	[15.731]	[6.700]
LOAN FUNDS
1] Secured Loans		41.513	37.506	39.000
2] Unsecured Loans		9.387	6.000	2.000
TOTAL BORROWING		50.900	43.506	41.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		25.647	27.775	34.300
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.497	18.148	19.400
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.050	0.050	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	25.605	36.619	27.900
	Sundry Debtors	7.895	4.706	19.100
	Cash & Bank Balances	1.447	1.381	3.100
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.054	6.120	4.200
Total Current Assets		39.001	48.826	54.300
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.259	26.311
	Other Current Liabilities	9.676	10.753	36.700
	Provisions	1.966	2.185	2.800
Total Current Liabilities		29.901	39.249	39.500
Net Current Assets		9.100	9.577	14.800
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		25.647	27.775	34.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	46.234	51.741
		Other Income	0.587	0.848
		Other Services Receipts	1.721	1.135
		TOTAL (A)	48.542	53.724	99.094
Less	EXPENSES
		Material Consumed	29.168	31.441
		Operating and Other Expenses	11.027	11.987
		Payment and Provision for Employees	8.744	10.407
		TOTAL (B)	48.939	53.835	92.950
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		[0.397]	[0.111]	6.144
Less	FINANCIAL EXPENSES (D)		7.474	7.055	6.257
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		[7.871]	[7.166]	[0.113]
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.651	1.897	1.722
	PROFIT / LOSS BEFORE TAX (E-F) (G)		[9.522]	[9.063]	[1.835]
Less	TAX (I)		0.000	0.320	0.340
	PROFIT / LOSS AFTER TAX (G-I) (J)		[9.522]	[9.383]	[2.175]
Less	Charge on account of transitional provisions for Gratuity under Accounting Standard 15		0.000	[0.340]	1.228
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		[47.294]	[38.251]	[34.848]
	BALANCE CARRIED TO THE B/S		[56.816]	[47.294]	[38.251]
	IMPORTS
		Components and spare parts	0.233	[1.993]	--
	TOTAL IMPORTS		0.233	[1.993]	NA
	Earnings Per Share (Rs.)		[3.17]	[3.12]	--

Particulars	31.03.2011
Sales Turnover [Approximately]	60.000

The above information has been parted by Mr. Desai [Manager of Sales and Service]

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011	30.06.2011
Type	1^stQuarter	2^nd Quarter	3^rd Quarter	4^th Quarter	5^TH Quarter
Sales Turnover	3.990	3.420	10.200	37.480	12.580
Total Expenditure	5.590	5.670	9.230	35.350	14.620
PBIDT (Excl OI)	[1.600]	[2.250]	0.970	2.130	[2.040]
Other Income	0.020	0.880	0.380	0.760	0.020
Operating Profit	[1.580]	[1.370]	1.350	2.890	[2.020]
Interest	1.780	1.680	1.620	2.230	1.700
Exceptional Items	0.000	0.000	0.000	0.000	0.000
PBDT	[3.360]	[3.050]	[0.270]	0.700	[3.720]
Depreciation	0.370	0.380	0.370	0.370	0.310
Profit Before Tax	[3.730]	[3.430]	[0.640]	0.450	[4.030]
Tax	0.000	0.000	0.000	0.000	0.000
Reported PAT	[3.730]	[3.430]	[0.640]	0.450	[4.030]
Extraordinary Items	0.000	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000	0.000
Net Profit	[3.730]	[3.430]	[0.640]	0.450	[4.030]

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	[19.62]	[17.46]	[2.19]
Net Profit Margin (PBT/Sales)	(%)	[20.59]	[17.52]	[1.85]
Return on Total Assets (PBT/Total Assets}	(%)	[17.16]	[13.53]	[2.49]
Return on Investment (ROI) (PBT/Networth)		[0.38]	[0.58]	[0.27]
Debt Equity Ratio (Total Liability/Networth)		[3.20]	[5.26]	[12.01]
Current Ratio (Current Asset/Current Liability)		1.30	1.24	1.37

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS :

During the year , the company achieved a turnover of Rs.48.543 millions excluding Excise Duty as against previous year's turnover of Rs.53.724 millions excluding Excise Duty and suffered a loss of Rs.9.522 millions as against previous year's net loss of Rs.8.722 millions. The company manufactured and dispatched 9 machines during the year as against 13 machines during the previous year.

The company's order book position at the beginning of the year consisted of 3 machines for a value of Rs.19.330 millions. During the year, the company received orders for 9 machines for a value of Rs.40.938 millions. Though there is increase in in-house manufacturing activity during the year , the material consumption has increased to 63.09% as compared to that of previous year of 60.77%.

PROSPECTS :

The continued global slowdown during the year continued to badly affect the order position of the company. The emerging scenario, especially the performance of the Indian economy in the first quarter of this fiscal, gives hopes of improved orders booking, especially for the large sized machines, for which they enjoy a niche position. The company has established sound market acceptability for its product as is evidenced by the Company receiving repeat orders from existing customers despite showing competition. However, the biggest handicap faced by the company relates to large working capital requirements coupled with delayed settlement of bills, especially by big customers.

The company is hopeful that there would be improvement in the financial performance during the ensuing fiscal year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry structure and development:

Their industry comes under the purview of General Engineering Industry in general and machine tool industry in particular. They manufacture CMC Horizontal Turning Lathes of 6" and above and their product falls under the Capital Goods Industry. The market for CNC lathes is estimated at 7000 machines for the financial year 2010-11.

Considering the size of the machine they manufacture, they estimate it at 5% of this, market, i.e. 350 machines and their company's share is 8% of this niche market i.e. 28 machines.

Outlook:

the current year looks to be good. The company has established sound market acceptability for its product as is evidenced by the Company receiving repeat orders from existing customers despite showing competition. The Company is exploring alternative product lines to erasure improved sales and better margins.

Contingent Liabilities:

a) Counter guarantees given to the bankers for guarantees given by them on behalf of the company Rs.2.129 millions (Rs.4.523 millions).

b) Claim by former employees/casual workers pending before Courts - Estimated Rs..0.084 million (Rs.1.973 millions).

c) The Company has considered an amount of Rs.1.457 millions due from a customer as good of recovery in respect of which the customer has made claim of Rs.7.349 millions for which no provision is made since the matter is pending in court. The company is confident of recovering the dues and that the claim of the customer will not stand.

d) . Liability in respect of pending fringe benefit tax, sales tax and entry tax assessments - not ascertainable.

e) The company's premise is located at Tarihal Industrial Area, Tarihal, Hubli, which was earlier covered under the jurisidication of Rainal Mandal Panchayat. Subsequently, Rainal Mandal panchayat was merged with Hubli Dharwad Municipal Corporation (H D M C), Hubli. Since KIADB had not fully developed this Industrial Estate, it has not handed over the same to H D M C. As such, they were collecting annual maintenance charges. The company has been regular in making the payment of annual maintenance charges to KIADB till 2007-08. H D M C has claimed Rs.16.988 millions (Rs. 15.619 millions) towards tax including penalty of Rs. 8.905 millions (Rs. 6.971 millions) for the period from 1995 to 2008. However, for the year property tax of Rs. 0.087 million (Rs.0.060 million) has been paid to H D M C as per the terms of H D M C for the relevant year. The matter relating to the payment of property tax for the years prior to 2008-09 is disputed through the Greater Hubli-Dharwad Industrial Association and the matter is pending before the Government of Karnataka. The company is confident that the claim relating, to prior years will be withdrawn and will not be payable. Consequently no provision has been made for the said demand. However and as a matter of abundant precaution, tax amount based on past demands of the Mandal Panchayat which has been provided in prior years to an extant of Rs. 0.318 million though not .paid is retained in the books of account.

Outflow of resources on the above can be determined at the time of settlement of disputes/claim.

UNAUDITED FINANCIAL RESULTS (PROVISIONAL)FOR THE QUARTER ENDED 30.06.2011

Particulars	3 Months Ended 30.06.2011 Unaudited	Previous Accounting Year Ended 31.03.2011 Unaudited
Income
a) Net Sales / Income from Operations	13.708	56.828
b) Other Operating Income	0.161	3.580
Total Operating Income	13.869	60.408
Expenditure
(a) (Increase)/decrease in Stock in Trade	[1.677]	[5.408]
(b) Consumption of Raw Materials	11.937	42.393
(c) Purchase of traded goods	0.000	0.000
(d) Employees Cost	1.780	8.079
(e) Excise Duty	1.200	5.290
(e) Depreciation	0.309	1.486
(f) Other Expenditure	2.591	10.658
Total Expenditure	16.220	62.498
Profit / (Loss) From Operations before other Income Interest & Exceptional Items	[2.351]	[2.090]
Other Income	0.019	2.042
Profit/(Loss) before Interest and Exceptional items	[2.332]	[0.048]
Interest	1.702	7.302
Profit / (Loss) after interest before Exceptional items	[4.034]	[7.350]
Exceptional Items	0.000	0.000
Profit / (Loss) From Ordinary activities before Tax	[4.034]	[7.350]
Provision for Taxation	0.000	0.000
Net Profit/(Loss) From Ordinary activities after Tax	[4.034]	[7.350]
Extraordinary Items	0.000	0.000
Net Profit/(Loss) for the period	[4.034]	[7.350]
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )	30.035	30.035
Reserves (Excluding Revaluation Reserves)	--	1.527
Debit Balance in Profit and Loss Account	--	64.166
Public Share Holding
Before Extraordinary Items
-Basic	[1.34]	[2.45]
-Diluted	[1.34]	[2.45]
After Extraordinary Items
-Basic	[1.34]	[2.45]
-Diluted	[1.34]	[2.45]
Average of Public Share Holding
- Number of Shares	415350	415350
- Percentage of shareholding	13.83	13.83
Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	--	--
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	--	--
- Percentage of shares(as a % of the total share capital of the company)	--	--
b) Non-encumbered
- Number of Shares	2588150	2588150
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	86.17	86.17
- Percentage of Share (as a % of the total share capital of the company)	-	-

Note :

• The above quarterly results as reviewed by the auditors committee, were approved and taken on record by the board of directors in their meeting held on 08.08.2011, as has been subject to review

• The company has got net deferred tax assets in the form of unabsorbed losses and depreciation. However the same is not recognized in the absence of virtual uncertainty in future points

• Regarding auditor’s observation : The company has considered an amount of Rs. 1.458 millions due from a customer as good recovery in respect of which the customer has made claim of Rs. 7.349 million for which no provision is made since the matter is pending in court. The company has taken legal opinion and claim of the party is not sustainable in low. The company is confident of recovering all the rules including the above

• Reserve reported for the year ended 31.03.2011, represents capital reserve

• No investor complaints were received by the company during the quarter ended 30.06.2011. there are no complaints remaining unresolved as at the beginning and end of the quarter

• Previous period figure have been regrouped / rearranged wherever necessary

FIXED ASSETS :

a) Free Hold Land

b) Factory Building

c) Plant and Machinery

d) Furniture and Fittings

e) Office Equipments

f) Factory Equipments

g) Electrical Installations

h) Jigs and Fixtures

i) Computers and Printer

j) Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.93
UK Pound	1	Rs.74.27
Euro	1	Rs.64.97

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	1
--CREDIT LINES	1~10	-
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		14

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.